SCGP expects revenue to reach B100bn
SCG Packaging Plc (SCGP) expects its revenue will increase to 100 billion baht this year through a combination of merger and acquisition and organic growth strategies after racking up 92.78 billion baht in revenue in 2020.
This year, the company has increased its investment budget to 20 billion baht from 10 billion last year as it seeks to expand business in the global market, a move that will help it achieve the goal.
SCGP chief executive Wichan Jitpukdee said yesterday SCGP is negotiating with 2-3 foreign companies under its merger plan and hopes to conclude the deals soon.
"We are looking for businesses which are related to lifestyle," he said.
SCGP recently acquired a 100% share in Go-Pak UK Ltd, a UK-based food service solution provider, to expand its customer base in the UK, Europe and North America by offering a wide variety of packaging products.
It also invested in Bien Hoa Packaging Joint Stock Company (SOVI) in Vietnam to expand its downstream packaging business and strengthen its upstream packaging operations in the country.
"The investment in SOVI and Go-Pak is expected to increase revenue by 5 billion baht per year and boost the company's ability to provide completely integrated packaging solutions," said Mr Wichan.
Last year SCGP saw its revenue go up by 4% year-on-year to 92.78 billion baht and net profit rose by 23% year-on-year to 6.45 billion baht.
Factors behind the increase include a wide array of packaging solutions and management of costs and supply chains that suited the situation.
The company's cooperation with PT Fajar Surya Wisesa Tbk and Visy Packaging (Thailand) Ltd also helped fuel its growth.
"Though the global economy faced an upheaval as a result of the Covid-19 pandemic, it managed to maintain steady growth during 2020," said Mr Wichan.
In the fourth quarter of 2020, SCGP reported a 2% increase in revenue to 23.59 billion baht year-on-year while net profit increased by 24% year-on-year to 1.48 billion baht.
"The revenue growth resulted from an increase in demand for packaging in the food and beverage sectors as well as other consumer goods, especially during the end-of-year festive season," said Mr Wichan.
Stimulus measures in Indonesia also contributed to the growth.